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Henkel Sustainability Report 2010

Reporting initiatives
GRI index
Milestones of sustainability orientation
Initiatives to improve our carbon footprint
Occupational incident Oitti, Finland, June 2010
Occupational incident Saveh, Iran, December 2010
Initiatives of our diversity team in 2010
Family and career
Demographic change
Recruiting instruments
Locally adapted compensation systems
Health initiatives
Occupational safety
Nationalities
Percentage of women
Age and seniority
Personnel development
Employee share program
Employees covered by collective agreements
Social engagement
Employees
Henkel Smile in figures
Integrated dialogue approach
Key areas expert dialogue
Awards and rankings 2001
Awards and rankings 2002
Awards and rankings 2003
Awards and rankings 2004
Awards and rankings 2005
Awards and rankings 2006
Awards and rankings 2007
Awards and rankings 2008
Awards and rankings 2009

Henkel Sustainability Report 2010


Reporting initiatives
Organization
European Chemical
Industry Council (Cefic)
World Business
Council for Sustainable
Development (WBCSD)
Pleon KohtesKlewes
Global Reporting
Initiative (GRI)

Activity
Year
Definition of a common reporting framework for 1997-1998
chemical companies and chemical industry
Development of a "Best-Practice-Toolbox" for
2000-2002
Sustainability Report
International stakeholder survey on non2002-2003
financial reporting
Participation in the first pilot testing program,
1999-2006
the "Measurement Working Group" and the GRI
feedback process

Results
Health, Safety,
Reporting Guidelines
Project information
Global Stakeholder
Report 2003
GRI-Guidelines

Henkel Sustainability Report 2010


GRI-Index
Reference
PROFILE
1. Strategy and Analysis
1.1
1.2
2. Organisational Profile
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
3. Report Parameters
Report Profile
3.1
3.2
3.3
3.4
Report scope and boundary
3.5

3.6
3.7
3.8
3.9
3.10
3.11

Core Indicators

Statement from the most senior decision


maker of the organization about relevance of
sustainability to the organization and its
Description of key impacts and risks and
opportunities
Name of organisation
Primary brands, products and services
Operational Structure including main divisions,
operating companies, subsidiaries, joint
Location of Organization Headquarter
Number and name of countries where
company operates
Nature of ownership and legal form
Markets served (Including geographic
breakdown, sectors served and types of
Scale of the reporting organisation
Significant changes during reporting period
Awards received during reporting period

Reporting period
Date of most recent report
Reporting Cycle
Contact point for questions regarding
Process for defining report content
Prioritizing topics within the report
Identifying stakeholders the organization
expects to use the report content
Boundary of the report
Specific limitations on the scope or boundary
of the report
Basis for reporting on joint ventures,
subsidiaries, leased facilities, outsourced
Data measurements techniques and base of
calculation
Significant changes from previous reporting
Explanation of the effect of any re-statements
of information provided in earlier reports

GRI Content Index


3.12

Table identifying the location of the Standard


Disclosure in the report

Independent Assurance
3.13.

Policy and current practice with regard to


seeking independent assurance
4. Governance, Commitment and Engagement
Corporate Governance
4.1
Governance Structures (general) and
Governance Structures (Sustainability)
4.2
Indicate whether the Chair of the highest
governance body is also an executive officer
4.3
For organizations that have a unitary board
structure, state the number of members of the
highest governance body that are
independent and/or non-executive members
4.4
Mechanisms for shareholders and employees
to provide recommendations or direction to the
highest governance body
4.5
Linkage between compensation for members
of the highest governance body, senior
managers, and executives, and the
organization's performance
4.6
Processes in place for the highest governance
body to ensure conflicts of interest are
4.8
Internally developed statements of mission
and values, codes of conduct and principles
and their status of implementation
4.9
Procedures of the highest governance body
for overseeing the organization's identification
and management of sustainability issues
4.10
Process for evaluating the highest governance
body's own performance, particularly with
respect to economic, environmental and social
performance
Commitments to external initiatives
4.11
Explanation of the precautionary approach
4.12
Externally developed economic,
environmental, and social charters, principles,
or other initiatives to which the organization
4.13
Memberships in associations and/or national/
international advocacy organizations
Stakeholder Engagement
4.14
4.15

List of stakeholder groups engaged by the


organization
Basis for identification and selection of
stakeholders with whom to engage

4.16

Approaches to stakeholder engagement,


including frequency of engagement by type
and by stakeholder group
4.17
Key topics and concerns that have been
raised through stakeholder engagement, and
how the organization has responded to those
key topics and concerns
GRI Economic Performance Indicators
Economic Performance
EC1
Direct economic value generated and
distributed, including revenues, operating
costs, employee compensation, retained
earnings, payments to capital providers and
governments as well as donations and other
community
investments
EC2
Financial implications
and other risks and
opportunities for the organization's activities
due to climate change
EC3
Coverage of the defined benefit obligation
Market presence
EC5
Range of ratios of standard entry level wage
compared to local minimum wage at
significant locations of operation
EC6
Policy, practices, and proportion of spending
on locally-based suppliers at significant
locations of operation
EC7
Procedures for local hiring and proportion of
senior management hired from the local
community at locations of significant
Indirect economic impacts
EC8
Development and impact of infrastructure
investments and services provided primarily
for public benefit
EC9
Understanding and describing significant
indirect economic impacts, including the
GRI Enviromental Performance Indicators
Materials
EN1
Materials used by weight or volume
EN2
Percentage of materials used that are
recycled input materials
Energy
EN3
Direct energy consumption by primary energy
source
EN4
Indirect energy consumption by primary
EN5
Energy saved due to conservation and
efficiency improvements

EN6

EN7
Water
EN8
EN10
Biodiversity
EN11
EN12

EN14

Initiatives to provide energy-efficient or


renewable energy based products and
services, and reductions in energy
requirements as a result of these initiatives
Initiatives to reduce indirect energy
consumption and reductions achieved
Total water withdrawal
Percentage and total volume of water recycled
and reused
Location and size of land owned, leased,
managed in protected areas and areas of
high biodiversity value outside protected
Description of significant impacts of activities,
products, and services on biodiversity in
protected areas and areas of high biodiversity
value outside protected areas
Strategies, current actions, and future plans
for managing impacts on biodiversity

Emissions, Effluents, and Waste


EN16
Total direct and indirect greenhouse gas
emissions by weight
EN17
Other relevant indirect greenhouse gas
emissions by weight
EN18
Initiatives to reduce greenhouse gas
emissions and reductions achieved
EN20
NO, SO, and other significant air emissions by
type and weight
EN21
Total water discharge by quality and
EN22
Total weight of waste by type and disposal
EN23
Total number and volume of significant spills
Products and Services
EN26
Initiatives to mitigate environmental impacts of
products and services, and extent of impact
mitigation
EN28
Monetary value of significant fines and total
number of non-monetary sanctions for
noncompliance with environmental laws and
regulations
Transport
EN29
Significant environmental impacts of
transporting products and other goods and
materials used for the organization's
operations, and transporting members of the
workforce
GRI Social Performance Indicators
1. Labor Practices and Decent Work
Employment

LA1
LA2

Total workforce by employment type,


employment contract, and region
Total number and rate of employee turnover
by age group, gender, and region

Labour/ Management Relations


LA4
Percentage of employees covered by
collective bargaining agreements
LA5
Minimum notice period(s) regarding
operational changes, including whether it is
specified in collective agreements
Occupational Health and Safety
LA6
Percentage of total workforce represented in
formal joint managementworker health and
safety committees that help monitor and
advise on occupational health and safety
programs

LA7
LA8

LA9
Training and education
LA10
LA11

LA12

Rates of injury, occupational diseases, lost


days, and absenteeism, and number of
workrelated fatalities by region
Education, training, counselling, prevention,
and risk-control programs in place to assist
workforce members, their families, or
community members regarding serious
diseases
Health and safety topics covered in formal
agreements with e.g. trade unions
Average hours of training per year per
employee by employee category
Programs for skills management and lifelong
learning that support the continued
employability of employees and assist them in
managing career endings
Percentage of employees receiving regular
performance and career development reviews

Diversity and equal opportunity


LA13
Composition of governance bodies and
breakdown of employees per category
according to gender, age group, minority
group membership, and other indicators of
diversity
LA14
Ratio of basic salary of men to women by
employee category
2. Human rights
Investment and Procurement Practices

HR1

Percentage and total number of significant


investment agreements that include human
rights clauses or that have undergone human
rights screening
HR2
Percentage of significant suppliers and
contractors that have undergone screening on
human rights and actions taken
HR3
Total hours of employee training on policies
and procedures concerning aspects of human
rights that are relevant to operations, including
the percentage of employees trained
HR4
Total number of incidents of discrimination and
actions taken
Freedom of Association and Collective Bargaining
HR5
Operations identified in which the right to
exercise freedom of association and collective
bargaining may be at significant risk, and
actions taken to support these rights
Child labor
HR6
Operations identified as having significant risk
for incidents of child labor, and measures
taken to contribute to the elimination of child
Forced and Compulsory Labor
HR7
Operations identified as having significant risk
for incidents of forced or compulsory labor,
and measures to contribute to the elimination
of forced or compulsory labor
3. Society
Community
SO1
Nature, scope, and effectiveness of any
programs and practices that assess and
manage the impacts of operations on
communities, including entering, operating,
and exiting and total number of business units
SO2
Percentage
analyzed for risks related to corruption
SO3
Percentage of employees trained in
organization's anti-corruption policies and
SO4
Actions taken in response to violations of code
of conducts, e.g. corruption
Public policy
SO5
Public policy positions and participation in
public policy development and lobbying
SO6
Value of financial and in-kind donations to
political parties, politicians and related
SO7
Number and outcomes of legal actions for
anti-competitive behaviour or anti-trust

SO8
4. Product responsibility
Customer Health and Safety
PR1

Monetary value of significant fines and total


number of non-monetary sanctions for noncompliance with laws and regulations

Life cycle stages in which health and safety


impacts of products and services are
assessed for improvement, and percentage of
significant products and services categories
subject to such procedures

Products and Service Labelling


PR3
Type of product and service information
required by procedures, and percentage of
significant products and services subject to
such information requirementst
PR5
Practices related to customer satisfaction,
including results of surveys measuring
customer satisfaction.
Marketing Communications
PR6
Programs for adherence to laws, standards,
and voluntary codes related to marketing
communications, including advertising,
promotion, and sponsorship
PR9
Total number of incidents of non-compliance
with regulations and voluntary codes
concerning marketing communications,
including advertising, promotion, and
sponsorship by type of outcomes

SR 2010

AR 2010

2-7

4-5

2-9

Cover
18-29

Cover
Cover (front)
40, 131

41
2-3

Cover (back)
58

41
2-3

26
Cover (front), 66-77

Cover (front)
Cover (front), 96-98
14
52, 69, 73, 77, 96-98
Cover (front), 10, 17, 27, 62
32, 40

Cover (front)
Cover (front)
Cover (front)
41

2
Cover (back)
Cover(back)
Cover (back)

Cover (front), 4-5, 38

135

Cover (front), 14, 37


Cover (front), 14, 37

96-98
135

Cover (front), 14, 37

131

Cover (front), 14, 37

96-98

14
14

45, 96

Cover (front)

135

6-7

26-39
29
29

27-29
36-39

26-39
6-9

29-30

6-7

62-65

1, 16-17
5, 6, 8, 9, 13, 14,17, 19,
20, 23, 24, 25, 28, 32,
33, 39
5, 6, 8, 9, 13, 14,17, 19,
20, 23, 24, 25, 28, 32,
33, 39

62-65

38

65

38

38-39
38-39

2-3, 35, 37

Cover (front), 36-39,


122-125

4-5, 10-15

62-65
126

2-3, 8

57-58

32, 37

55-58

2-3, 34-35

64

2-3, 21, 22, 25, 34-35

17
17

14
14
Cover (front), 11- 14, 28

64

4-5, 10-14, 16-17, 19-21, 64


23-24, 26-29
4-5, 10-14, 16-17, 19-21,
23-24, 26-29
15
15

not relevant
9, 16-17, 21, 24

9, 16-17, 21, 24

15
15
Cover (front), 4-5, 1013,18-20, 23-24, 26-29
15
15
15
12
4-5, 16-29
not relevant

13

64

2-3

55

2-3, 37

55

37
37

33, 36

36

64

36

36

37
31, 32

31, 32

31, 37

32

56

10-11

8-9
8,11, 33

33

2-3, 16-17

6-7
6-7
6-7

6, 39
not relevant
not relevant

30

not relevant

16-17

16

25

25

not relevant

Henkel Sustainability Report 2010


Milestones of Sustainability Orientation
1876
1878
1878
1900
1907
1911
1912
1917
1927
1933
1934
1940
1959
1969
1971
1976
1976
1980
1982
1986
1986
1987
1990
1991
1991
1992
1994
1995
1997
1998
2000
2001
2001
2003
2004
2005

2005
2006
2007
2008
2009
2010
2011

Henkel Sustainability Report 2010


Milestones of Sustainability Orientation

Fritz Henkel founded Henkel & Cie in Aachen; workforce: 3 employees; manufacture of the first product named Un
Laundry Detergent based on waterglass.

First successful brands for home laundering in Germany: Henkels Bleich-Soda (bleaching soda), a powdered mix
soda and waterglass.
Relocation of the company from Aachen to Dsseldorf-Flingern. Fritz Henkel arranges for office workers to receive
copies of the Dsseldorfer Stadtanzeiger (a local newspaper) to keep them up to date with current affairs.
Free midday meal for employees every day, construction of the first company apartments for employees.
Persil was developed as the first self-acting laundry detergent. It relieved housewives of the laborious rubbing by ha
and the attendant wear and tear on the fabric.
Sport and games areas were provided for use during breaks.
A first-aid center was set up at the plant and a full-time nurse was hired.
Henkel employees elected their first representative body (workers council).
Henkel became the first company in the chemical industry in Germany to employ a safety engineer, who was respo
for planned accident prevention. Alongside his safety tasks, he sought to improve conditions of work.
A welfare station was established on the site to offer advice to mothers, as well as care for infants and medical
examinations for children.
Since 1927, systematic accident prevention work had reduced the number of accidents per 100 employees per yea
Organization of a plant kindergarten as well as a site medical service staffed by volunteers.
Introduction of regular ecological quality checks for detergents and household cleaners.
Launch of the solvent-free Pritt glue stick and Persil 70. The enzyme-containing Persil 70 was given the claim biolo
Setting up of the central department for environmental and consumer protection.
Launch of Proxidan the first branded laundry detergent with reduced phosphate content.
Management Principles (since 1996: Guidelines for Teamwork and Leadership).
The first in-vitro tests were carried out in place of animal testing, energy saving campaign as a consequence of the
The first Fritz Henkel Awards for Innovation were presented to employees.
Principles of Environmental and Consumer Protection (since 1995: Principles and Objectives of Environmental Prot
and Safety).
Launch of phosphate-free Persil in Germany.
Environmental protection is included as one of the aims in Henkels corporate guidelines.
Systematic environmental protection training courses for all employees of Henkel KGaA.
Establishment of a works agreement on Family and Work between Henkel KGaA and the Works Council.
Signing of the Business Charter for Sustainable Development of the International Chamber of Commerce (ICC).
Publication of the first Environment Report.
Corporate mission: Competitive advantages through eco leadership.
Publication of Guidelines for Teamwork and Leadership, which are binding for all Henkel employees worldwide.
Introduction of integrated management systems, binding company-wide SHE standards for safety, health and
environment, and launch of worldwide SHE audits.
Founding of the MIT Initiative.
Introduction of Code of Conduct and Business Ethics.
First Sustainability Report.
To mark the 125th anniversary of Henkel, support provided for 125 country projects.
Declaration of participation in the United Nations Global Compact.
Grouping of worldwide social responsibility activities under the umbrella of Henkel Smile.
Introduction of Code of Corporate Sustainability.

Henkel is the first company to sign the Charter for Sustainable Cleaning of the International Association for Soaps
Detergents and Maintenance Products (A.I.S.E.).
SHE-Standards supplemented by social standards and purchasing guide lines throughout the Company.
Definition of the five Henkel focal areas of sustainable development and introduction of corporate sustainability obje
Henkel participates in a pilot project on product carbon footprints in Germany.
Introduction of global guidelines on Diversity & Inclusion.
Introduction of the Representation of Interest in Public Affairs standard. Redefined Vision and Values as a contribu
to Henkels winning culture.
Fritz Henkel Foundation now provides the umbrella for all social engagement activities.

Henkel Sustainability Report 2010


Area
Logistics structures

Synergies /
Cooperations

Product optimization

Business trips /
company cars

Sustainability Report 2010


Activity

Intermodal transports: Since 2008, we have been working with European logistics partners to gradually build up our
intermodal transport routes for the efficient transport of products by means of different modes of transport. In 2009, for
example, about 300,000 of the kilometers traveled by our laundry detergents in their journey from our productions site in
Dsseldorf to our warehouses in Lomazzo and Ferentino in Italy and Vienna in Austria were covered by rail instead of by
road. This reduces the annual emissions of carbon dioxide by about 55 percent. For 2010, we and our logistics partners have
already identified other European routes that are suitable for switching product transport to rail. In the USA, too, we are
increasing the proportion of intermodal transport routes.
Since the beginning of 2010, Henkel has been shipping its cosmetics products by rail within Germany. We now transport all
cosmetics products by rail from our production site in Wassertrdingen in Bavaria to our central cosmetics warehouse in
Monheim near Dsseldorf. About 86,000 metric tons of cosmetic products will be transported in this way every year, thus
reducing annual carbon dioxide emissions by some 7,000 metric tons.
In 2009, as part of the Supply Chain Optimization Project, we focused on simplifying the structures of our finished products
warehouses in the USA. As a result, we were able to reduce the transport mileage between the various intermediate
warehouses by 35 percent. This is equivalent to avoiding the emission of almost 2,000 metric tons of carbon dioxide.
Expansion of pooling activities, i.e. targeted grouping of transports and storage of similar product categories together with
those of other suppliers at the same logistics service providers facilities. This generates synergistic effects in storage, order
picking and transportation, thus ensuring that only fully loaded trucks travel to the central warehouses of our customers.
Logistics-oriented granting of discounts, i.e. achieving savings through efficient order quantities. Here, manufacturers and
retailers share whole or half truckloads, for example. Such systems were successfully introduced in 2010 and plans have
already been made to roll them out across Europe in the next two years.
Centrally coordinated logistics purchasing and, where possible, grouping of transport consignments carried between
individual sites. Example in USA and Europe: Increase in shipment weight and therefore in truck capacity utilization by
grouping the transport quantities of neighboring Henkel sites.
We aim to cooperate with our retail partners to identify potential for improvements, and therefore participate in, for example,
the European Efficient Consumer Response initiative.
Expansion of transport cooperations with other companies to avoid empty transports.
Product optimization in terms of weight and volume, provided this is possible without compromising the performance and
stability of the packaging. Example: switch of U.S. liquid laundry detergent brand Purex to a concentrate. Result: avoidance
of about 17,000 metric tons of carbon dioxide emissions from transport operations per year thanks to reduced product
volume.
Step by step relocation of packing material production to the actual sites.
Carbon dioxide emissions per kilometer of new company cars cut by about eleven percent in 2010 relative to 2009. Technical
progress as well as the country-specific definition of efficient reference vehicles and the fixing of upper limits for carbon
dioxide emissions when ordering new cars have all contributed to this reduction.
New in 2010: Break down of total monthly costs of a car into the company fraction and the employees own contribution. By
increasing the transparency of the fuel costs incurred every month, we want to encourage our employees to drive more
efficiently.
Guidelines for replacing business and airline travel by video and telephone conferencing.
Example: In the last three years alone, the duration of our worldwide teleconferencing has increased ten-fold. This has gone
hand in hand with a considerable saving in carbon dioxide emissions.

Henkel Sustainability Report 2010


Oitti, Finland, June 2010
Occupational incident
In 2010, one serious incident occurred at
a Henkel site. After a factory in Oitti,
Finland, had been closed down,
potentially harmful emissions were
generated when an external service
provider was carrying out cleaning work
on tanks. The emissions also settled on
the neighboring area.

ty Report 2010
Measures Initiated
Henkel informed the local residents, supervisory bodies and the media
about the incident and the measures to be taken. We also set up a
central hotline so that we could respond rapidly to residents
questions. An independent external expert analyzed soil, water and
plant samples; the results showed that no health risks to those living
around the site and no long-term damage to the environment were
expected. To confirm these findings, we will again have the soil, water
and plants tested by an independent expert in the spring of 2011. All
actions were taken in close cooperation with the Finnish authorities.
We have thoroughly analyzed this incident and, as a consequence,
revised the specifications for site closures accordingly.

Henkel Sustainability Report 2010


Saveh, Iran, December 2010
Operational Incident
At our site in Saveh, Iran, there was a
fire in a warehouse for packaging
materials.

ty Report 2010
Measures Initiated
Thanks to the rapid action of employees, and with the support of the
fire department, the fire was brought under control and fartherreaching damage prevented. As a consequence, the fire protection
equipment at the site was thoroughly examined. This incident
underscores the importance of regular SHE training for our
employees.

Henkel Sustainability Report 2010


Country/Region
USA, Russia and Germany:
Benelux:

Mexico:
Italy:
France:
Germany

Instrument
Start of mentoring programs, kick-off in Russia, followed by
the USA and Germany.
Expansion of the existing cross-generational mentoring
program to all business units. This led to greater employee
satisfaction. Mentees report an increase in their selfconfidence and greater understanding. Mentors feel valued
as they pass on their experience and learn about the way
younger co-workers work and think.
Introduction of special work-life balance measures to support
women in managerial positions, so that they can better
concentrate and be more productive when they are working.
Focus group interviews resulting in guidelines for working at
home for women and men, to improve their work-life
Audit of the family-career balance over the course of two
years. The audit kicked off with focus group interviews and
an employee survey on the intranet.
Second Womens Networking Day by the womens network
at the Dsseldorf site. As a result, female managers are
enjoying greater visibility, and new members have joined the
womens network. Germany: Continued outreach to new
managers by the Henkel Networking Circle, as well as
integration of employees who had transferred to Germany
from other countries by the Expatriate Network. Both
networks supported the international week at the Dsseldorf
site. Its goal was to promote even better understanding
among the employees of different nationalities at the site.

Henkel Sustainability Report 2010


Country/Region
Germany:

Austria:
Spain:
France:

Instrument
At the German sites, special attention is given to providing day
care for children under the age of 3. In Dsseldorf, for example,
a second day care center was opened in 2008, offering another 75
day care places to employees at the site. Mid 2010 Henkel
established a parents network of employees to support the
integration of job and family.
company to offer its employees comprehensive advice and
support in regard to conflict mediation, health, pregnancy and
family matters.
In Spain, together with service provider Ms Vida Red (More Life
Net), Henkel is establishing a program at its sites offering a
variety of courses and services on the theme of family and career.
Audit of the family-career balance over the course of two years.
The audit kicked off with focus group interviews and an employee
survey on the intranet.

Henkel Sustainability Report 2010


Country/Region
France:
Benelux:

kel Sustainability Report 2010


Instrument
The French Senior Program offer elder employees the possibility to take part in
additional seminars, to ask for part-time (80%) 3 years before the retirement and to
take part in a tutor program for knowledge sharing with new, young employees.
Expansion of the existing cross-generational mentoring program to all business
units. This led to greater employee satisfaction. Mentees report an increase in their
self-confidence and greater understanding. Mentors feel valued as they pass on
their experience and learn about the way younger co-workers work and think.

Henkel Sustainability Report 2010


Country/Region
Europe:

South Africa:
Germany:
Worldwide:

Sustainability Report 2010


Instrument
In 12 European countries, we have firmly established the Henkel Innovation
Challenge. This international competition provides a platform for ambitious
students from all disciplines to showcase their talent. On their way to the
international final experienced Henkel managers offer professional input and
the young talents gain real-life insights to our fascinating business which is all
about people and brands. In 2009, 2,100 students from eleven countries and
121 universities took part in this competition. The circle of winners already
provided us with seven new employees in Belgium, Greece, Italy, The
Netherlands, and Turkey in 2009.
in South Africa provided secondary school children insights into work and
career opportunities at Henkel, and reported on their own careers at the
company.
In 2010, 495 young people received a continuous education in 20 different
occupations by Henkel in Germany.
To establish intensive contact with university graduates, the most promising
students and interns are nominated for the Henkel Career Track, one of our
early binding initiatives. The so called Trackies profit from an exclusive
selection of seminars, training sessions and workshops. The programs facilitate
the personal development of the participants and also allow them to tap into the
extensive Henkel network. All this pays off: many of the former interns stay with
Henkel after they graduate or come back as professionals

Henkel Sustainability Report 2010


Country/Region
China:

South Africa:

Germany:
Italy:

Instrument
In China, non-managerial employees receive annual bonus payments
based on five defined team targets, five personal targets and their
work attitude. The latter covers aspects such as acceptance of
responsibility, initiative, customer orientation, and teamwork skills.
In the Andean countries Colombia, Ecuador, Peru and Venezuela, all
non-managerial employees benefit from a standardized system of
performance-related remuneration. Two team targets, derived from the
targets of the relevant business unit, are supplemented by three
personal targets directly related to the employees field of responsibility
and
influence.
In Germany,
all non-managerial receive a success-related bonus
payment, as soon as the objectives specified for the German
The performance-related remuneration system is part of the collective
wage agreement of Henkel employees in Italy. Every four years, the
Company defines the targets for the "premio di partecipazione."
Performance indicators for the individual targets as well as the bonus
amounts are determined in consultation with the unions and the works
council.

Henkel Sustainability Report 2010


Country/Region
Brazil
Diadema/Sao Paulo
India
Karaikai
Indonesia Cimanggis/Jakarta
Lebanon
Beirut
Germany
Hungary
Barcs, Krsladny,
USA
Avon, Ohio
USA
Seabrook, New Hampshire
Asia

South Africa, Kenya

India

Germany

ability Report 2010


Instrument
Gymnastics at workplace: Employee sensitization for health topics
Gratis health check for employees
Health forum for employees, for example topic stress at workplace
Non-smoking Initiative
"Health" working group; various preventive measures, e.g. cancer
prevention and back exercises
Health insurance for all employees; establishment of company sport
clubs
Purchase of automatic external defilibrillators (AED) to help prevent
sudden death from cardiac arrest, training of first aid providers in
Free flu shots and regular blood pressure and cholesterol checks
To implement occupational health standards, a two-member team a
specialist in occupational medicine from Henkel in Dsseldorf and the
regional manager for safety, health and environmental protection
advised sites in China, India, Indonesia, Korea and Thailand about
health risks, prevention and medical care. The two-day program
includes an assessment of the medical equipment, evaluation of the
suitability of emergency measures, and optimization of care for
employees in acute situations. Close collaboration between the sites
and the local medical institution and doctors s is a key element of the
program.
In many African countries, HIV/AIDS has become one of the greatest
social challenges in the history of the continent. Henkel South Africa
has responded early by introducing an HIV/ AIDS policy, which was
developed in collaboration with health officials and representatives of
local employee organizations, trade unions, and the
nongovernmental organization Khanya Family Centre. The program
focuses on prevention by raising employee awareness. Education
about how AIDS is transmitted is also aimed at employees who work
with HIV-positive people. Events organized include discussions on
the status and spread of the disease and lectures by doctors on
prevention. In addition to emphasizing preventive measures, the
policys objective is to work against discrimination and stigmatization
of employees affected.
Also in India, breaking through the taboo that surrounds the HIV/
AIDS is one of the major challenges. Here, Henkel is a partner of the
SNS Foundation, a nongovernmental organization in India offering a
number of services. At the Henkel site in Gurgaon, for example, it
organizes health courses and a weekly consultation hour, from which
the local population also benefits.

Since May 2007, a plant agreement on heath management has been


in effect at our Dsseldorf site. It focuses on raising the awareness of
employees and managerial staff with regard to the importance of
health. It also includes concrete measures for promoting health in the
workplace, such as ergonomic improvements and special training
courses, and for helping employees to recuperate from illness.
Health management is a task that involves company doctors, human
resources managers, occupational health and safety officers,
members of works councils, and managers. Many sites also offer
health promotion activities, or special activity weeks for shift workers.

Henkel Sustainability Report 2010


Country/Region
Worldwide

Germany
Dsseldorf
Syria
Aleppo
Kenya
Nairobi
Italy and Greece
All sites
China
Nanhui
USA
North Kansas City
Brazil
Diadema, Itapevi, Jacare
South Africa
Johannesburg
Thailand
Bang Pakong

Instrument
In recent years, an increase in the number of traffic accidents has
been noted worldwide. In 2010, we therefore tightened the rules in
various countries for the use of company-owned and rented vehicles.
An example of this is the specification of mandatory safety features in
rental cars. We also invest more in driver safety training for our field
representatives.
Under the motto Safety is Fun, the Holthausen site organized its
Forklift Truck Day 2010. 40 participants from various organizational
The Henkel site in Aleppo, Syria, won the 2010 internal Henkel award
for safety, health, environment and quality in the Middle East/North
About 40 percent of all employees attended a five-day workshop at
which they were instructed in occupational health and safety by
Development of comprehensive communication concepts with the aim
of raising the safety awareness of employees. Since 2007, all local
Our plant in Nanhui received a Safety Award from the local authorities
in 2009 for its exemplary occupational health and safety performance.
In 2009, we singled out our site in North Kansas City, Missouri, for a
very special achievement: In the last 25 years, not one day of work
was lost due to an occupational accident.
Comprehensive health promotion program. Employees are
encouraged to perform daily gymnastic exercises designed to help
prevent work-related accidents and illnesses.
Comprehensive safety trainings: with the aid of special simulators all
employees are instructed in appropriate safety behavior and
emergency evacuation e.g. in case of a fire.
Contractors employees are shown an introductory video with
comprehensive safety advice before they start work.

Henkel Sustainability Report 2010


Nationalities (as of December 31)
Henkel
Managers
At headquarters in Dsseldorf
Management Board

2008
109
77
51
4

2009
116
82
48
4

2010
119
82
50
4

Henkel Sustainability Report 2010


Percentage of women (as of December 31)
2008
2009
Henkel
32.9%
32.9%
Managers
26.4%
27.4%
1)
Top managers
13.7%
16.4%
1) Management Board, Corporate Senior Vice Presidents, Management Circles I and IIa

es I and IIa

2010
32.1%
28.7%
17.0%

Henkel Sustainability Report 2010


Age and seniority (as of December 31)
Average seniority in years
Average age of employees
Age structure
16 29
30 39
40 49
50 65

2008
9.8
39.4

2009
11.0
39.3

19.5%
32.7%
29.6%
18.2%

18.7%
34.2%
29.7%
17.4%

2010
10.3
39.4
18.1%
34.4%
29.7%
17.7%

Henkel Sustainability Report 2010


Personnel development (as of December 31)
Internal promotion (managers)
International job rotation
Trainees (Germany)
Employee share program (as of December 31)

2008
1,877
433
510
2

2009
1,462
443
511
2

2010
1,337
470
487
2

Henkel Sustainability Report 2010


Employee share program (as of December 31)
Percentage of employees owning Henkel shares

2008
27.4 %

2009
28.4%

2010
29.3%

Henkel Sustainability Report 2010


Employees covered by collective agreements (as of
December 31)
Percentage worldwide
Percentage in European Union (EU)

2008

2009

44%
79%

44%
79%

2010
44%
79%

Henkel Sustainability Report 2010


Social engagement (as of December 31)
Total number of projects supported
Number
people
Time off of
from
worksupported
for employee-initiated projects
(days)
Donations in thousand euros (financial and product
donations, not counting time off)
Financial donations for employee-initiated projects as a
percentage of total donations

2008
2,476

2009
2,155
500.000

285

318

7,529

7,684

42 %

55 %

2010
2,493
730.000
54
6,087
41 %

Henkel Sustainability Report 2010


Employees (as of December 31)
2008
2009
Henkel worldwide
55,142
49,262
Structure of workforce
Non-managerial employees
82.0%
80.0%
Managers
16.6%
18.4%
Top managers1)
1.4%
1.6%
2)
Employee fluctuation worldwide
5.7%
4.9%
1) Management Board, Corporate Senior Vice Presidents, Management Circles I and IIa
2) Based on employee resignations

es I and IIa

2010
47,854
79.8%
18.6%
1.6%
4.6%

Henkel Sustainability Report 2010


Social engagement (as of December 31)
Total number of projects supported
Number of people supported
(days)
Donations in thousand euros (financial and product
donations, not counting time off)
Financial donations for employee-initiated projects as a
percentage of total donations

2008
2,476

285

2009
2,155
500.000
318

7,529

7,684

42 %

55 %

2010
2,493
730.000
54
6,087
41 %

Henkel Sustainability Report 2010


Stakeholder
Customers and
Consumers

Analysts and Investors

Politicians, government
authorities and nongovernmental
organizations

General public and local


communities

Scientists and Universities

ainability Report 2010


Theme
International: The Schwarzkopf Academy is now present in more than 52
countries worldwide. Its training courses for hairdressers range from seminars on
haircutting and styling techniques to management courses. In many countries,
these complement the local educational system for hairdressing professionals.
Central and Eastern Europe: In order to assure optimal and resource-conserving
application of our building adhesives, Henkel establishes training centers for
craftsmen. In Central and Eastern Europe, for example, Henkel Ceresit has
already founded 60 training centers, which also supports the national professional
education
system.
International:
We have developed numerous tools to demonstrate the
advantages of our innovations transparently to our customers. One of these is the
Value Calculator, which enables customers to see the economic benefit they will
gain by using our products. The Value Calculator is currently available for more
than 30 brands, including Bonderite, TecTalis, Macroplast and Macromelt.
International: The website www.about-cosmetics.com/de provides consumers
with help regarding the proper and safe use of hair colorants.
International: The website www.henkel321.com from Henkel WINTeQ and
Ceretherm offers customers and consumers an easy way to calculate annual
energy consumption of their home. It also demonstrates the savings potential that
can be achieved e.g. through adequate faade insulation.
Germany: Henkel actively seeks a dialogue with financial experts. For this reason
employees of our CSR and Investor Relations departments participate in the
working group Deutsche Vereinigung fr Finanzanalyse und Asset
Management (DVFA, German association for fiscal analyses and asset
management) dealing with sustainable investments.
Switzerland: 2010 offered an important forum for experts to confer: the World
Conference on Detergents, held in Montreux, Switzerland, from 5 to 7 October.
This was the seventh time the event had been staged at this venue since 1977.
Representatives from all leading detergent manufacturers and raw materials
suppliers, as well as academics, met here to discuss the conference theme of New
Strategies in A Dynamic Global Economy. Henkels Management Board Chairman,
Kasper Rorsted, delivered a keynote speech in which he stressed that innovative
sustainable consumption is a challenge for the entire value chain.
Germany: A delegation from the Chinese Ministry of Trade visited Henkel in
Dsseldorf in September 2010 to exchange information regarding the efficient use
of energy, methods of reducing carbon dioxide emissions, and socially responsible
business
practices.
In December,
Antonio Tajani, the European Commissioner for Industry and
Entrepreneurship, spoke with Chief Financial Officer Dr. Lothar Steinebach and
the designated Executive Vice President Laundry & Home Care, Bruno Piacenza,
about sustainability and the impact of various aspects of planned legislation on
Henkels daily business.
Germany: Henkel researchers are involved in the strategic steering committee of
the German Environment Ministrys Nano Commission, in which representatives
from the scientific and business communities, government authorities, consumer
organizations, and environmental groups exchange views on the opportunities and
risks of nanotechnology.

Malaysia: Henkel supports the goals of the round Table for Sustainable Palm Oil
(RSPO) to find adequate ways and means for the sustainable cultivation of Palm
Oil. In the year 2009, Henkel took part in the 7th meeting of the RSPO (RT7) in
Kuala Lumpur, Malaysia. As a visible sign of its engagement, Henkel became an
official member of the RSPO in April 2008.
Brazil: To raise awareness among employees, their families as well as neighbors
with regard to environmental protection, health, and accident prevention, Henkel
Brazil continues to organize their annual fashion show From trash to luxury. The
show makes use of creative works of art to show what is disposed of each day and
make people aware of recoverable materials.
New Zealand: At our Auckland New Lynn site, Henkel employees collected
production waste like plastics and cardboard for a Trash to Fashion event at
schools to draw attention to the subject of recycling both among employees and
Germany: An increasingly important communications theme for Henkel is
information about the resource-conserving use of our products. As in previous
years, we produced brochures and had consumer information stands to
accompany the nationwide Sustainable Washing day in Germany.
USA: Since 2008, Henkel researchers have been cooperating with the Global
Institute of Sustainability (GIOS) at Arizona State University in producing life cycle
analyses for laundry detergents. The project will run for several years.
Germany: In collaboration with the Universities of Rostock and Oldenburg in
Germany, we initiated the project Sustainable Cleaning for a clean environment.
Henkel employees developed extensive materials as a resource for teaching
chemistry in schools. The following materials can be downloaded and used freely:
PDF-Download: Chemistry for Beginners
PDF-Download: Chemistry for Advanced

Henkel Sustainability Report 2010


Key Areas
Economic Development

Expectations in Industrialized

Values and Management

Promote the adoption of environmental and


social standards, throughout the value chain,
especially among suppliers
Create transparency regarding economic,
ecological and social aspects of corporate
activities, especially in emerging economies
Support human rights

Products and Marketing

Ensure product safety

Remain competitive and offer development


opportunities to emerging economies

Offer quality products at fair prices


Promote sustainable consumption through
ethically and ecologically sound products,
and by informing consumers and raising
their awareness

Resource Efficiency and


Climate Protection

Stronger focus on products:


Dematerialization of the economy by moving
from product- to service-oriented business
models
Help to reduce greenhouse gas emissions

Employees and

Promote job security through employee


training and development
Proactively address challenges like equal
opportunity and population aging

Jobs

Social Commitment

Work toward meeting the United Nations


Millennium Development Goals
Help to solve social problems, also by
encouraging employee volunteering

Expectations in Emerging
Contribute to the countrys development,
especially in structurally weak regions
Act ethically and legally
Establish high environmental and social
standards, and set an example for
suppliers and competitors
Help to build management competencies
and institutions
Develop and market quality products for
those at the bottom of the affluence
Ensure that products are safe and
environmentally compatible
Consider the cultural and social context

Transfer know-how and modern energyand resource-conserving technologies


Satisfy growing consumer needs with
products that use limited resources
Create jobs and train employees
Ensure occupational safety and health
protection
Promote and raise employee awareness of
environmental protection
Support and promote, in particular,
disadvantaged children and young people
Raise public awareness of environmental
protection
Promote education and research for
sustainable development

Henkel Sustainability Report 2010


2001
Country
Brazil
China

Hungary
India
Slovenia
USA
International

Company
Henkel do Brazil,
So Paulo
Henkel Detergents &
Cleaning Products,
Xuzhou
Henkel Magyarorszg,
Budapest
Henkel SPIC India,
Karaikal
Henkel Slovenija,
Maribor
Loctite Corporation,
Seabrook
Henkel

ty Report 2010
Prizes and awards
Corporate Citizenship Award of the business magazine Exame
Award by local government for outstanding environmental activities

Second place in the Hungarian Business Leaders Forum's


"Business Life for the Protection of the Environment" awards
Environmental Excellence Award of the Greentech Foundation
Award from the Slovenian Chamber of Commerce for factory and
workplace excellence
New Hampshire Governor's Award for Pollution Prevention
Environment Online Award in gold from the B.A.U.M. environmental
initiative

Henkel Sustainability Report 2010


2002
Country
Austria
Belgium
Great Britain
India
Italy
Puerto Rico
Slovenia
Spain
USA

USA

Company
Henkel Austria,
Vienna
Henkel Belgium,
Brussels
Henkel Consumer
Adhesives, Winsford
Henkel SPIC India,
Karaikal
Henkel Loctite, Cerano
Henkel Puerto Rico,
Sabana Grande
Henkel Slovenija, Maribor
Henkel Ibrica,
Barcelona
Henkel Loctite,
Warrensville Heights,
Henkel Consumer
Adhesives,
Avon, Ohio
Henkel Loctite, Olean,
New York

Report 2010
Prizes and awards
Award of the city of Vienna for waste management
Best Service Award of the Belgian DIY association
Investor in People award for attractive employers
First place in Business and the Environment competition
Regional ethical prize for companies
Governor's recognition of successful integration of disabled
persons
Winner of national Learning Company competition
Sector winner in Best Employer competition (consumer goods)
Recognized once more as attractive employer in the region

Recognition by the U.S. Environmental Protection Agency

Henkel Sustainability Report 2010


2003
Country
International
International
International
Malaysia
Hungaria

Company
Henkel
Henkel
Henkel
Henkel (Malaysia) Sdn
Henkel Magyarorszg Kft.

Prizes and awards


Environment award for Henkel managers
Media award for sustainability
Good marks for sustainability report
Recognition from the Prime Minister for Henkel in
Gold medal for Henkel in Hungary

Henkel Sustainability Report 2010


2004
Country
USA
India

Company
Henkel Avon, Ohio
Henkel SPIC India

Germany

Henkel KGaA
Dsseldorf-Holthausen
'Trusted Brand' award for Henkel brands
Henkel

International

Prizes and awards


North Coast 99 Award
Environmental Prize of the Federation of Indian
Chambers of Commerce and Industry (FICCI)
INTEGRATIO prize by the Kaiserswerth Diakonie

Henkel Sustainability Report 2010


2005
Country
Romania

Company
Henkel Romania

Germany

Henkel

India

Henkel India

Italy

Henkel

Germany

Henkel

Germany

Henkel

Germany

Henkel

Prizes and awards


Golden PR Award for Excellence 2005 in the category
Non-commercial campaigns
Recognition for the best German sustainability report by
future e.V., the IW Institute for Ecological Economy
Research, and the business magazine Capital
Henkel was recognized in India with the Government of
Pondicherrys Environmental Protection and
Conservation Award for 1999-2003 for its successful
initiatives for sustainability and social responsibility
Henkel received the Sodalitas Social Award for its social
commitment in Italy
Henkel Smile was awarded the ENTERPreis 2005 in
the social commitment category
euros, to schools in the administrative district of
Dsseldorf
Family-friendly company: Henkel is recognised for its
exemplary corporate commitment to reconciling the
demands of career and family

Henkel Sustainability Report 2010


2006
Country
Italy

Company
Henkel Italy

France

Henkel France

Eastern Europe Henkel CEE

Brazil

Henkel Brazil

Germany

Henkel Germany

ty Report 2010
Prizes and awards
In December 2006, Henkel Italy was awarded the Federchimica
Product Stewardship Award in the category large enterprises for
its Cleanox LF Technology. The new technology significantly
reduces the quantity of hazardous substances utilized in industrial
pickling processes for stainless steel. This greatly enhances
occupational safety and sets new health, safety and environmental
standards
in the steel
industry.
With tailor-made
high-tech
adhesives and sealants, Henkel made it
possible for its partner company Solar Integrated to manufacture
flexible and extremely lightweight solar roofs. In November 2006,
the successful collaboration was honored with the European
Environmental Press Award at the Pollutec environment exhibition
in Lyon,
France.
In
November
2006, in Vienna, Austria, Henkel Central Eastern
Europe (CEE) was presented with the Urban Award in the largescale businesses category. This award recognizes companies that
have demonstrated intercultural competence by successfully
implementing gender mainstreaming policies and diversity
management.
In 2006, Henkel Brazil was included for the first time in the
nationwide ranking of the 150 best companies to work for. The
ranking is based on an employee survey and its evaluation by an
independent jury, which is formed by journalists of the respected
Brazilian business magazines Exame and Voc S/A. This ranking
helps Henkel Brazil to further position itself as employer of choice
in
region. 2006, Henkel was presented with the Initiative Award
In the
November
for Occupational Training and Continuing Education for its
PHAROS | evaluation system. The Otto Wolff Foundation, the
Association of German Chambers of Industry and Commerce
(DIHK) and the Wirtschaftswoche business newspaper, jointly
bestow the award each year to recognize exemplary initiatives to
enhance the quality and attractiveness of in-company training.

Henkel Sustainability Report 2010


2007
Country
Austria

Company
Henkel CEE

Germany

Henkel Germany

Austria

Henkel CEE

ty Report 2010
Prizes and awards
Innovation plus energy saving these are performance criteria that sealant
specialist Henkel fulfills with its Teroson brand. For its WINTeQ systems,
Henkel was chosen as the Energie Genie 2007 (Energy Genius 2007) at the
energy saving show in Wels, Austria. WINTeQ stands for Windows Technology
Quality and is a system for sealing joints on doors and windows, helping to
achieve dramatic reductions in energy losses from buildings.
Further recognition of Henkels family-conscious human resources policy. In
Germany, we were presented with the audit beruf und familie (family and
career audit) certificate of the non-profit Hertie Foundation. The audit under
the patronage of Federal Family Minister Dr. Ursula von der Leyen is a
management tool designed to promote and continuously improve a familyconscious corporate culture. It has come to be regarded as the seal of quality
for
family-friendly
policies.
In Austria,
the newhuman
Henkelresources
portal i@pply
was rated the best electronic
recruiting program of the 150 largest companies. All potential applicants for
positions as fulltime employees, part-time employees, interns or trainees can
contact Henkel directly in their own language in more than 50 countries through
this new Internet portal.

Henkel Sustainability Report 2010


2008
Country
Germany

Company
Henkel

Germany

Henkel

Germany

Henkel

China

Henkel China

Korea

Loctite
Henkel Korea

Austria

Henkel CEE

Germany

Henkel

ty Report 2010
Awards & Rankings
Network for Workplace Health Promotion for its commitment to workplace health management,
especially in the fields of healthy diet, smoking prevention, mental health, and health-promoting
physical activity.
In December 2008, Henkel received the German Sustainability Award in the category Most
Sustainable Brand. The award is in recognition of exemplary performance in sustainability
management
theHenkel
associated
communication
work.
In September and
2008,
received
the Corporate
VICTRESS Award. This award has been
presented by the Initiative since 2005 to companies whose corporate policy demonstrates
affirmative support for women and the family. The jury, made up of representatives from
business, politics and the public, was impressed above all by Henkels consistent support for
family-friendly measures.
In July 2008, the Henkel Loctite manufacturing plant Yantai in China was honored as
Advanced enterprise in production safety. The award conferred by the local government
acknowledges outstanding performance in the field of safety, health and environment.
In July 2008, the Henkel Home Care production site in Korea was recognized and honored as
"Best Company in Ansan City for Environmental Management". The Ansan city government
audited 3,200 plants in Ansan Industrial Complex out of which the Henkel plant was selected as
the best company and won the City Mayor Award.
For the third time, the Center for Corporate Citizenship Austria (CCC-A) assessed the
commitment of the 100 largest companies in Austria to corporate social responsibility. In April
2008, Henkel Central Eastern Europe not only became the sector winner but also occupied first
place in the overall rankings, with 82 out of 100 possible points.
Frankfurt/Germany: DVFA, the German association of investment professionals, and the
Wirtschaftswoche business magazine award a prize annually to German companies for the
best environment, social and governance (ESG) performance. The ESG Award recognizes
companies that proactively combine optimization of return on sales, environmental policy and
social approaches with investor-oriented corporate governance. The 1st prize in the category
for DAX-listed companies went to Henkel AG & Co. KGaA in March 2008.

Henkel Sustainability Report 2010


2009
Country
Germany

Company
Henkel

International

Henkel

Germany

Henkel

ty Report 2010
Awards & Rankings
For more than 133 years, Henkel has been combining leading brand
performance with responsibility toward people and the environment. In May
2009, Henkel received the 2009 Plus X Award conferred as part of a major
European technology competition for its standing as an Ecologically
Committed Company. Also recognized were the companys new liquid laundry
detergents
marketedterms
underHenkel
the Terra
Activ
brand.
Also in international
ranks
among
the leading companies in
sustainability management. For example, in the context of conferral of the first
ever European Corporate Responsibility Award in Prague in February 2008,
Henkel was chosen among the 22 finalists.
The German business magazine Handelsblatt together with the publishing
house Econ Verlag presented their annual communication awards on Feb.
19th in Berlin. The Silver Award recognized Henkels online CSR reporting and
communication strategy.

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